Causes of the Global Crisis

In my opinion, the first global crisis of the 21st Century is a combination of 3 different crisis:
1. Petrol Crisis: petrol is one of the biggest causes of the global crisis. Petrol is needed in various industries and of course our main transport systems use petrol. Petrol started increasing when the US invaded Irak, then several problems in Nigeria, Mauritania, Venezuela, etc. Prices of West Texas and Brent ( US and Europe petrol references) have doubled the price in 1 year

2. Food Crisis: one of the solutions for the petrol crisis and to avoid buying it to the OPEC, was the Biofuel, that can be broadly defined as solid, liquid, or gas fuel derived from recently dead biological material. There are two common strategies of producing biofuels. One is to grow crops high in sugar (sugar cane, sugar beet, and sweet sorghum) or starch (corn/maize), and then use yeast fermentation to produce ethyl alcohol (ethanol). The second is to grow plants that contain high amounts of vegetable oil, such as oil palm, soybean, algae, or jatropha. Due to this use of products, prices of food in general have been increased, specially rice, corn and sugarcane

3 Finance Crisis: an economic problem characterized by contracted liquidity in the global credit markets and banking system. An undervaluation of real risk in the subprime market ultimately resulted in cascades and ripple effects affecting the world economy generally. The crisis began with the bursting of the US housing bubble and high default rates on "subprime" and adjustable rate mortgages (ARM). Loan incentives, such as easy initial terms, in conjunction with an acceleration in rising housing prices encouraged borrowers to assume difficult mortgages on the belief they would be able to quickly refinance at more favorable terms. However, once housing prices started to drop moderately in 2006–2007 in many parts of the U.S., refinancing became more difficult. Defaults and foreclosure activity increased dramatically, as easy initial terms expired, home prices failed to go up as anticipated, and ARM interest rates reset higher. Foreclosures accelerated in the United States in late 2006 and triggered a global financial crisis through 2007 and 2008. During 2007, nearly 1.3 million U.S. housing properties were subject to foreclosure activity, up 79% from 2006. This phenomenom have affected whole world, especially Europe, where people cannote face their morgages, where banks need speciall finance fron the European Central Banks and where many Real State and Construction companies have closed down due to they gave credits and morgage to NINJA's (NO INCOME N, NO JOBE AND NO ASSETS) people.

The first twoo crisis above (petrol and food) has the consequence of decreasing the money value due to inflation and salaries remaining the same, or even increasing unmeployment.
The third crisis ( finance) have caused increase of the interest rate, many banks bankrumpcy and many construction and real state companies bankrumpcy

evryone is saying that the crisis will last at least till 2010, so if you don't mind let me give you 3 advices to bear this global crisis:

1. Be optimistic: it will help you to reach new aims
2. Don't spend more than necesary: avoid spending money in unnecesary things
3. Reduce expenses: be carefull with water and electric consumtion and of course with petrol and food.

Regards,
Navin Khemlani
Intema Solutions